TOPSKQ

[barry_1]

Shows time decay of -10%,surely a mistake? I take it is a knock out warrant?

[barry_1]

SBK ?

[SimonPB]

y6es mistake .. will correct over night ..

[ACEP_]

Yes Barry, Naven (0800 11 780) confirmed it an error to me. He also explained to me how to calculate fair value on a KO. If you are interested here goes - eg. TOPSKQ. KO Barrier 24,5k less TOPI Spot of (assume) 23,295. For Puts deduct 295 points and calls add 295 points (295 pnts a constant due to Market Maker hedging against Top40 futures, cost of finance less dividends to expiry). Therefore 24,5k - (23,295 - 295 = 23k) divided by Cover ratio ie. 5k = 30c = fair value! Simple once you know how!

[barry_1]

Thanks that is a great formula,i did not think of asking how they arrived at....i don't carry a stop loss on the CALL but when i get nervous i buy an equal amount of PUTS,has worked wonderfully so far as the PUTS usually come sharply off ,i then sell them.

[barry_1]

!!!?????